MAXJet Airways grounded by fuel prices

All-business-class airline files for bankruptcy, blaming higher fuel costs and troubled credit markets.

LONDON (AP) — MAXjet Airways ceased operations on Monday – leaving jets on tarmacs and stranding passengers on Christmas Eve – as the all-business class airline filed for bankruptcy protection.

MAXjet took what it called a “drastic measure” because of soaring fuel prices and the deteriorating credit market. But analysts suggested competition from AMR Corp.’s American Airlines on one of MAXjet’s key routes also played a big role.


“High fuel prices were a contributing factor, but American’s inauguration in October of (service between New York’s John F. Kennedy International Airport and London’s Stansted Airport) … was the coup de grace,” said Robert Mann, an airline consultant in Port Washington, N.Y.

MAXjet launched in 2005 and offered “all-premium” flights between Stansted, New York, Las Vegas and Los Angeles. But it couldn’t compete with deeper-pocketed American’s frequent flyer program, “newer more efficient aircraft with upgraded business class seats, corporate contracts and overall 20 flights daily to three London airports,” Mann said.

AP